03-03-2016, 07:13 AM
you could try use the ticker symbol D38 to find CDW listing in Saxo??
The joint venture thing in late 2014 was just a proposal which CDW subsidiary Tomoike HK would contribute USD7.5m.
[The formation of the EJV is subject to the initial approval of the Suzhou Industrial
Park Economic & Trade Development Bureau in Suzhou (the “SIPETDB”) and the final
approval from the relevant authority in Beijing, the PRC. Upon the approval of the
SIPETDB and the relevant authority, the parties shall adopt the terms of the LOI as
the articles of association of the EJV. Under the supplemental agreement, Tomoike
HK may withdraw from the LOI at any time by giving the JV Partner a written notice
of its intention to do so.]
Apparently since there is no news, we can assume that this PROPOSED joint venture has been called off as the china company was a real estate company in Suzhou. Maybe even bankrupt already since the property decline past year.
Late last year there was an announcement of establishment of another company via Tomoike HK but it was not the aforementioned investment company. See no reason for CDW to not announce if it went ahead. Also financials have not shown any movement of the PROPOSED 7.5m out of the company. Maybe can email the company to clarify but I am not that concerned.
I think the past 2 quarters have been pretty bad already with revenue at historical low of 27m so any rebound in business could be sooner. Hopeful next quarterly there is at least some increase back to 40m or more. Though I do think the new technology should have come about sooner. Perhaps CDW need to establish a R&D budget and look into having some OLED capacity.
However I am not too worried as globally it's pretty bad times and CDW is transitioning to new technologies. After paying down debt to now ~7% of market cap which is pretty insignificant level considering cash is ~94.5% of market cap which makes net cash about 87.7% today.
Basically CDW is a bit of a shell company now waiting to ramp up production with new technology. If they don't succeed with the future ramp up of light guide, then there's always option to divest their factories or switch to making something else. Just wait and see how loh. IMHO downside is limited with such high cash holding and any dips will make it too attractive to ignore..
The joint venture thing in late 2014 was just a proposal which CDW subsidiary Tomoike HK would contribute USD7.5m.
[The formation of the EJV is subject to the initial approval of the Suzhou Industrial
Park Economic & Trade Development Bureau in Suzhou (the “SIPETDB”) and the final
approval from the relevant authority in Beijing, the PRC. Upon the approval of the
SIPETDB and the relevant authority, the parties shall adopt the terms of the LOI as
the articles of association of the EJV. Under the supplemental agreement, Tomoike
HK may withdraw from the LOI at any time by giving the JV Partner a written notice
of its intention to do so.]
Apparently since there is no news, we can assume that this PROPOSED joint venture has been called off as the china company was a real estate company in Suzhou. Maybe even bankrupt already since the property decline past year.
Late last year there was an announcement of establishment of another company via Tomoike HK but it was not the aforementioned investment company. See no reason for CDW to not announce if it went ahead. Also financials have not shown any movement of the PROPOSED 7.5m out of the company. Maybe can email the company to clarify but I am not that concerned.
I think the past 2 quarters have been pretty bad already with revenue at historical low of 27m so any rebound in business could be sooner. Hopeful next quarterly there is at least some increase back to 40m or more. Though I do think the new technology should have come about sooner. Perhaps CDW need to establish a R&D budget and look into having some OLED capacity.
However I am not too worried as globally it's pretty bad times and CDW is transitioning to new technologies. After paying down debt to now ~7% of market cap which is pretty insignificant level considering cash is ~94.5% of market cap which makes net cash about 87.7% today.
Basically CDW is a bit of a shell company now waiting to ramp up production with new technology. If they don't succeed with the future ramp up of light guide, then there's always option to divest their factories or switch to making something else. Just wait and see how loh. IMHO downside is limited with such high cash holding and any dips will make it too attractive to ignore..
